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Bill > S327


NJ S327

Limits forum of consumer contract disputes to New Jersey.


summary

Introduced
01/09/2018
In Committee
06/17/2019
Crossed Over
Passed
Dead
01/08/2020

Introduced Session

2018-2019 Regular Session

Bill Summary

This bill prohibits terms and conditions in a consumer contract that require the dispute be resolved in a venue, forum, or jurisdiction outside of the State of New Jersey. This bill will assure that consumers are not forced by businesses to resolve their disputes in distant and costly forums. Consumer contracts increasingly contain forum-selection clauses that require litigation or arbitration to take place outside of New Jersey, making dispute resolution costly and difficult for consumers. These contracts are typically standardized forms drafted with no input from the consumer, and are offered on a take-it-or-leave-it basis. The consumer is often the less sophisticated party, who is agreeing to the contract without the benefit of an attorney, and may not be able to afford to travel to resolve a dispute.

AI Summary

This bill prohibits terms and conditions in a consumer contract that require the dispute to be resolved in a venue, forum, or jurisdiction outside of the State of New Jersey. This bill aims to ensure that consumers are not forced by businesses to resolve their disputes in distant and costly forums, as consumer contracts often contain forum-selection clauses that require litigation or arbitration to take place outside of New Jersey, making dispute resolution costly and difficult for consumers. The bill provides an exception for insurance companies duly licensed or authorized to transact business under the insurance laws of New Jersey, or eligible surplus lines insurers allowed to conduct business in the state.

Committee Categories

Budget and Finance, Business and Industry

Sponsors (2)

Last Action

Senate Commerce Hearing (19:00 6/17/2019 Revised 6/14/19 (S-1000 added)) (on 06/17/2019)

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